Mortgage applications higher, so are rates

by Steve Randall07 Jul 2017
There was a rise in mortgage applications in the week ending June 30 despite mortgage rates rising.

The Mortgage Bankers Association’s composite index of weekly mortgage applications was up 1.4% increase (seasonally adjusted) and 1% rise (unadjusted) across all loan types.

Purchase loan applications were up 3% (adjusted and unadjusted) while refinance mortgage applications slipped 0.4%.

The increase in loan applications was despite mortgage rates rising last week. They have also continued higher this week.

Freddie Mac’s Primary Mortgage Market shows the biggest jump in 30-year FRM rates since March; averaging 3.96% with an average 0.6 point for this week, up from 3.88% last week.

For a 15-year FRM the rate this week averaged 3.22% with an average 0.5 point, up from 3.17% a week ago. The average 5-year ARM rate was 3.21% with an average 0.5 point, up from 3.17% a week ago.

"Global interest rates turned up sharply over the last week. The 10-year Treasury yield was no exception, increasing 10 basis points in a holiday-shortened week. The 30-year mortgage rate followed suit, rising 8 basis points to 3.96 percent," said Sean Becketti, Freddie Mac’s chief economist.

Meanwhile, Bankrate.com’s weekly national mortgage survey of top 10 banks and thrifts in the top 10 markets, shows the 20-year FRM rate rising to an average of 4.16% with an average 0.25 point, compared to 4.07% last week.

A 15-year FRM averaged 3.37% (average 0.21 point) this week, up from 3.31% last week and the 5 year ARM rate averaged 3.58% (average 0.36 point) up from 3.52% last week.

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